Available to Promise (ATP)
What is Available to Promise (ATP)?
Available to Promise (ATP) is a term used in inventory management to refer to the amount of a product that is available to be sold to customers. It represents the amount of inventory that is currently on hand, plus any additional inventory that is expected to be received from suppliers in the near future.
ATP is an important measure for businesses that sell products, as it helps them to manage customer expectations and to ensure that they are able to fulfill orders in a timely manner. It is typically calculated by taking into account a range of factors, such as current inventory levels, lead times for restocking, and order commitments from customers.
By monitoring ATP, businesses can avoid overcommitting to customers and can reduce the risk of running out of stock. It can also help businesses to identify opportunities to optimize their inventory management processes, such as by reducing lead times or by improving forecasting accuracy.
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